Inheriting a house is rarely the blessing people imagine it to be.
Sure, there’s the initial moment where you think, “Great, I just got a free house!” But then reality sets in:
- The house is 45 minutes away and you already own a home
- It’s filled with decades of your parents’ belongings
- It needs a new roof, updated electrical, and hasn’t been renovated since 1987
- Property taxes are due
- The utilities are still running
- Your siblings want their share of the inheritance NOW
- And you have absolutely no idea where to even start
Sound familiar?
If you’ve recently inherited property in Pennsylvania—whether it’s in Philadelphia, the suburbs, or anywhere across the state—this guide will walk you through exactly what to do, what your options are, and how to make the smartest financial decision for your situation.
The Reality of Inheriting Property in Pennsylvania
Let’s start with some honesty: inheriting a house in Pennsylvania is often more complicated than inheriting property in other states.
Why? Pennsylvania has specific probate laws, inheritance taxes, and municipal requirements that can catch you off guard. Add in the emotional weight of dealing with a deceased family member’s belongings, and it’s no wonder so many heirs feel overwhelmed.
Here’s what most people don’t realize when they inherit Pennsylvania real estate:
You Inherit More Than Just the House
When you inherit a property, you also inherit:
- Outstanding mortgage balances (if any)
- Property tax obligations (immediately)
- Homeowners insurance requirements (you’ll need your own policy ASAP)
- Utility bills (heat, electric, water, sewage)
- Maintenance responsibilities (even if vacant)
- Liability (if someone gets hurt on the property)
- Municipal violations or code issues
- HOA fees (if applicable)
Many heirs are shocked when they get hit with a $3,500 property tax bill or find out the house has $12,000 in unpaid water/sewer bills.
Pennsylvania’s Inheritance Tax Hits Fast
Pennsylvania is one of only six states with an inheritance tax—and it’s due within 9 months of the date of death.
Tax rates:
- 0% for surviving spouses
- 4.5% for direct descendants (children, grandchildren)
- 12% for siblings
- 15% for other heirs
Example: If you inherit a house valued at $200,000 as a child, you’ll owe $9,000 in inheritance tax. That money is due even if you haven’t sold the house yet.
This creates pressure to sell quickly—especially if you don’t have $9,000 sitting around.
Step 1: Understand the Probate Process in Pennsylvania
Before you can sell an inherited house in PA, you need to understand if probate is required.
What Is Probate?
Probate is the legal process of:
- Validating the deceased’s will (if one exists)
- Appointing an executor or administrator
- Inventorying assets
- Paying debts and taxes
- Distributing property to heirs
Do You Need to Go Through Probate in Pennsylvania?
You might NOT need probate if:
- The property was held in joint tenancy with rights of survivorship
- The property was in a living trust
- The estate value is under $50,000 (small estate exception)
- The property transferred via beneficiary deed
You WILL need probate if:
- The deceased owned the property solely in their name
- There are multiple heirs who need legal distribution
- There are outstanding debts against the estate
Timeline: Pennsylvania probate typically takes 6-12 months (or longer if contested).
Can You Sell Before Probate Is Complete?
Short answer: Usually yes, but it’s complicated.
As the executor or administrator, you can typically sell estate property during probate IF:
- The will authorizes it, OR
- All heirs agree in writing, OR
- The court grants permission
Most cash home buyers (including us) work with properties in probate regularly. We can help navigate this process.
Step 2: Assess the Property’s Condition and Value
Now comes the reality check: What is this house actually worth, and what condition is it in?
Get a Realistic Property Assessment
Don’t rely on:
- ❌ The county tax assessment (usually outdated)
- ❌ Zillow’s “Zestimate” (often wildly inaccurate)
- ❌ What your parents said it was worth in 2003
Do this instead:
- Walk through the property with a critical eye
- Take photos and notes of everything that needs work
- Get multiple opinions on value:
- Local real estate agent CMA (Comparative Market Analysis)
- Cash buyer offer (like ours)
- Professional appraisal if needed
Common Issues with Inherited Pennsylvania Homes
After buying hundreds of inherited properties across PA, here’s what we see most often:
Deferred Maintenance:
- Roof is 20+ years old and needs replacement
- HVAC system from the 1990s barely works
- Plumbing has issues (lead pipes in older homes)
- Electrical needs updating (knob-and-tube, insufficient service)
- Foundation cracks or water intrusion
Outdated Everything:
- Kitchen from the 1970s-80s
- Bathrooms with pink tiles and old fixtures
- Carpet throughout (often stained or worn)
- Paneling on walls
- Popcorn ceilings
- Single-pane windows
Hidden Problems:
- Mold from moisture issues
- Pest infestations (especially in vacant homes)
- Code violations or open permits
- Roof leaks that caused interior damage
- Septic or well issues (in suburban/rural areas)
The Stuff:
- Entire house filled with belongings
- Basement packed with decades of storage
- Garage full of tools and equipment
- Shed with yard equipment
- Personal items mixed with junk
What Repairs Actually Cost in Pennsylvania
Here’s what you’re looking at financially to get most inherited homes market-ready:
| Repair Item | Typical Cost Range |
|---|---|
| New Roof | $8,000 – $15,000 |
| HVAC Replacement | $5,000 – $10,000 |
| Kitchen Renovation | $15,000 – $35,000 |
| Bathroom Renovation | $8,000 – $15,000 |
| New Flooring (whole house) | $6,000 – $12,000 |
| Electrical Upgrade | $3,000 – $8,000 |
| Plumbing Repairs | $2,000 – $6,000 |
| Full Estate Cleanout | $1,500 – $5,000 |
| Painting (interior) | $3,000 – $6,000 |
| Window Replacement | $5,000 – $12,000 |
Total for typical inherited house: $30,000 – $75,000 in updates to sell at retail value.
Step 3: Understand Your Options for Selling
You have three main paths when you inherit a house in Pennsylvania. Let’s break down each one honestly.
Option 1: List with a Real Estate Agent
Best for:
- Houses in great condition or only need cosmetic updates
- Heirs who have time to wait (3-6 months)
- Properties in hot markets (Philly suburbs, college towns)
- When you want to maximize sale price and can afford updates
The Process:
- Clean out and stage the house
- Make necessary repairs
- List on MLS with agent
- Show to potential buyers
- Negotiate offers
- Wait for buyer financing (30-45 days)
- Close
Timeline: 3-6 months typically
Costs:
- Agent commission: 5-6% of sale price
- Closing costs: 2-3% of sale price
- Repairs/updates: $10,000-$50,000+
- Staging: $1,000-$3,000
- Cleanout: $1,500-$5,000
- Holding costs during sale: Taxes, utilities, insurance
Net Proceeds Example (House worth $250,000):
- Sale price: $250,000
- Agent commission (6%): -$15,000
- Closing costs (2.5%): -$6,250
- Repairs to list: -$25,000
- Cleanout/staging: -$3,000
- 4 months holding costs: -$4,000
- NET: $196,750
Option 2: Sell As-Is to a Cash Buyer
Best for:
- Houses needing significant repairs
- Heirs who want to sell quickly (2-4 weeks)
- When siblings need their inheritance distributed NOW
- Properties with title issues, liens, or complications
- When you live out of state and can’t manage repairs
- Avoiding the stress and hassle
The Process:
- Contact cash buyer (takes 5 minutes)
- Property evaluation (we come to you)
- Receive cash offer (within 24-48 hours)
- Choose your closing date
- Sign paperwork
- Get paid
Timeline: 7-30 days (you choose)
Costs:
- Agent commission: $0
- Closing costs: $0 (we cover)
- Repairs: $0
- Staging: $0
- Cleanout: $0 (we handle it)
- Holding costs: Minimal
Net Proceeds Example (Same $250,000 house):
- Cash offer: $185,000 (typically 70-80% of ARV)
- Agent commission: $0
- Closing costs: $0
- Repairs: $0
- Cleanout: $0
- 2 weeks holding costs: -$500
- NET: $184,500
Wait—that’s basically the same net amount but $12,000 less hassle!
Option 3: Keep It as a Rental Property
Best for:
- Houses in great condition
- Strong rental markets
- Heirs with property management experience
- When you want ongoing income
- If all heirs agree (rare)
Considerations:
- Becoming a landlord is a job, not passive income
- Property management costs 8-10% of rent
- Repairs and maintenance are ongoing
- Vacancy periods mean no income
- Difficult tenants create stress
- Capital gains implications when you eventually sell
Real Talk: Most heirs who keep inherited properties as rentals end up selling within 2-3 years because it’s more work than expected.
Step 4: Navigate the Legal and Financial Maze
Selling an inherited house in PA involves several legal and financial steps most people don’t anticipate.
Dealing with Multiple Heirs
The biggest complication: When there are multiple heirs who don’t agree.
Common scenarios:
- One sibling wants to keep the house, others want to sell
- Disagreement on listing price or whether to make repairs
- Someone wants to buy out the others but can’t get financing
- Tension over dividing personal belongings
Our solution: We can buy out specific heirs or purchase from all heirs simultaneously with separate checks. We’ve mediated dozens of these situations.
Clearing Title Issues
Inherited properties often have title complications:
- Outstanding liens from deceased’s debts
- Medicaid liens (if deceased was on long-term care)
- Property tax liens
- Mechanic’s liens from contractors
- Judgments against the deceased
Good news: Cash buyers can often close even with liens—we work with title companies to clear them at closing, deducting the amounts from proceeds.
The Mortgage Situation
If there’s still a mortgage on the inherited property:
You have several options:
- Pay it off with estate funds
- Keep paying it while preparing to sell (if you want to list)
- Sell as-is to cash buyer who pays off the mortgage at closing
- Refinance into your name (if keeping the property)
Important: Due-on-sale clauses mean the lender can technically demand full payment when ownership transfers. In practice, most lenders work with heirs, but this is something to be aware of.
Tax Implications You Need to Know
The Step-Up in Basis (Good News!):
When you inherit property, you get a “step-up in basis” to the fair market value at the date of death. This is HUGE for taxes.
Example:
- Parents bought house in 1985 for $60,000
- You inherit it in 2025 when it’s worth $200,000
- Your “basis” for capital gains purposes is $200,000 (not $60,000)
- If you sell for $200,000, you owe $0 in capital gains tax
However:
- Pennsylvania inheritance tax still applies (4.5%-15%)
- If you sell for MORE than the date-of-death value, you pay capital gains on the difference
- If you live in the house for 2+ years as primary residence, you can exclude up to $250,000 in gains
Recommendation: Consult with a CPA who understands Pennsylvania real estate and estate taxes.
Step 5: Deal with the Estate Cleanout
This is the emotional and physical mountain that stops many heirs in their tracks.
The Weight of “The Stuff”
An entire lifetime of belongings. Your childhood home. Memories in every room. And you have to sort through all of it.
Common feelings:
- Overwhelm (“Where do I even start?”)
- Guilt (“Am I being disrespectful by getting rid of their things?”)
- Grief (every item triggers memories)
- Exhaustion (it’s physically demanding work)
- Family tension (siblings fighting over items)
Estate Cleanout Options
DIY (Do It Yourself):
- Cost: Time + dumpster rental ($400-$800) + donation drop-offs
- Time: 40-80+ hours depending on house size
- Pros: Free, control over every item
- Cons: Emotionally draining, physically exhausting
Estate Sale Company:
- Cost: 25-40% commission on items sold
- Time: 2-3 weeks to organize and run sale
- Pros: Makes money on valuable items
- Cons: Requires staging, strangers in the home, items remaining after
Junk Removal Service:
- Cost: $800-$3,000 depending on volume
- Time: 1-2 days
- Pros: Fast, they do everything
- Cons: Expensive, nothing is sorted for value/donations
Sell to Cash Buyer Who Handles It All:
- Cost: Factored into offer, but you pay nothing out of pocket
- Time: 0 hours for you
- Pros: Literally walk away, we sort/donate/dispose of everything
- Cons: Items with value aren’t sold separately
We’ve cleaned out hundreds of inherited properties. You can leave clothes in closets, food in the fridge, furniture where it sits—we handle every single thing.
Special Situations: When Things Get Complicated
The House Is in Foreclosure
If your parents died behind on mortgage payments, the lender will continue foreclosure proceedings.
What to do:
- Contact the lender immediately
- Explain the situation (death of borrower)
- Explore options: loan assumption, short sale, payoff with estate funds
- Consider quick sale to cash buyer who can close before auction date
We’ve helped dozens of heirs navigate this nightmare scenario.
The House Has Severe Damage
Fire damage, hoarding situation, mold, structural issues—we’ve seen it all.
Reality check: Most agents won’t list severely damaged properties. Traditional buyers won’t touch them. Your only realistic options are:
- Pay tens of thousands for repairs (if you have the funds)
- Sell as-is to an investor/cash buyer
We buy houses in ANY condition across Pennsylvania. Seriously—any condition.
You Live Out of State
Managing an inherited property from 500+ miles away is a logistics nightmare.
Challenges:
- Can’t easily show the property
- Can’t supervise repairs
- Can’t manage estate cleanout
- Flying back and forth gets expensive
- Time zone differences complicate everything
Solution: Sell to a local cash buyer who handles everything and can close remotely with digital signatures.
Reverse Mortgage on the Property
If the deceased had a reverse mortgage, the loan becomes due upon death.
Your options:
- Pay off the reverse mortgage and keep/sell the house
- Sell the house and use proceeds to pay off the reverse mortgage
- Let the lender foreclose (if house is worth less than loan balance)
Important: You typically have 6 months to resolve a reverse mortgage after death. We can help you sell quickly if you’re in this situation.
Medicaid Recovery Claims
Pennsylvania has Medicaid Estate Recovery Program (MERP). If the deceased received Medicaid benefits, the state may file a claim against the estate to recover costs.
What this means:
- Medicaid may place a lien on the inherited property
- The lien must be satisfied before or at closing
- Reduces net proceeds to heirs
Good news: Cash buyers work with these situations regularly—we coordinate with Medicaid recovery to clear liens at closing.
Real Stories: How Heirs Handled Inherited PA Properties
Story 1: The Out-of-State Siblings (Montgomery County)
Situation: Three siblings in California, Texas, and Florida inherited their parents’ 1960s ranch in Lansdale, PA. House needed major updates, full of belongings, and siblings couldn’t agree on anything.
Solution: Sold as-is to CFR Philly.
- We provided separate checks to all three siblings
- Handled complete estate cleanout
- Closed in 18 days
- Net proceeds: $167,000 split three ways
Quote from heir: “We couldn’t afford to fly back and forth to PA to deal with repairs and cleanout. Selling as-is was the only realistic option for our situation. CFR made it completely painless.”
Story 2: The Foreclosure Race (Delaware County)
Situation: Daughter inherited mother’s house in Chester, PA. Mother had died 8 months prior, mortgage was in default, and sheriff sale was scheduled in 45 days. House needed $30K in repairs.
Solution: Cash sale closed in 21 days, before foreclosure auction.
- We paid off the remaining mortgage balance
- Cleared property tax liens
- Daughter walked away with $22,000 (instead of nothing if foreclosed)
Quote from heir: “I was losing sleep every night worrying about losing the house to foreclosure. CFR worked with my attorney and my mom’s mortgage company to get everything paid off. I actually ended up with money—I thought I’d get nothing.”
Story 3: The Sibling Buyout (Bucks County)
Situation: Two brothers inherited their dad’s house in Levittown. One wanted to keep it and live there, the other needed his share immediately for medical bills.
Traditional problem: Brother wanting to keep it couldn’t qualify for a mortgage to buy out his sibling.
Solution: We bought the property from both brothers, then sold it back to the one who wanted to keep it via owner financing.
- Both brothers got their inheritance money immediately
- Brother who wanted to keep it got the house without bank qualification
- Creative solution that met everyone’s needs
Your Action Plan: What to Do Right Now
If you’ve inherited a house in Pennsylvania, here’s your immediate to-do list:
Week 1: Secure the Property
- [ ] Change the locks
- [ ] Notify homeowners insurance (or get new policy)
- [ ] Set up utilities in your name (or maintain existing)
- [ ] Secure valuables and important documents
- [ ] Check for immediate maintenance issues (burst pipes, etc.)
Week 2-4: Assess the Situation
- [ ] Locate the will and death certificate
- [ ] Contact an estate attorney if probate is needed
- [ ] Get property tax information from county
- [ ] Contact mortgage company if there’s a loan
- [ ] Document property condition with photos
- [ ] Research Pennsylvania inheritance tax obligations
Month 2: Decide Your Path
- [ ] Get multiple opinions on property value
- [ ] Calculate costs of listing vs. selling as-is
- [ ] Discuss with co-heirs (if any) and reach agreement
- [ ] Get at least 3 cash buyer offers if selling as-is
- [ ] Interview real estate agents if listing traditionally
Month 3: Execute Your Decision
- [ ] Sign listing agreement OR accept cash offer
- [ ] Begin estate cleanout OR let buyer handle it
- [ ] Coordinate with attorney on probate/title issues
- [ ] Work with title company to clear any liens
- [ ] Close on the property
Why Many Heirs Choose to Sell As-Is
After handling hundreds of inherited properties across Pennsylvania, we’ve noticed the same reasons keep coming up:
“I live 8 hours away and can’t manage this from a distance.”
“My siblings and I can’t agree on anything—we just want to be done.”
“The house needs $40,000 in repairs I don’t have.”
“I’m emotionally drained and just need this chapter closed.”
“The inheritance tax is due in 3 months and I don’t have the money.”
“I tried listing it for 6 months and got no offers.”
“I can’t deal with sorting through 50 years of belongings.”
All of these are completely valid reasons. Selling as-is isn’t “giving up” or “taking the easy way out”—it’s making a smart, practical decision based on your unique circumstances.
What a Fair Cash Offer Looks Like in Pennsylvania
Here’s the honest truth about what we (and other legitimate cash buyers) pay for inherited properties:
Typical offer range: 65-80% of After Repair Value (ARV)
Factors affecting your offer:
- Location (Philly suburbs pay more than rural PA)
- Property condition
- Amount of repairs needed
- Market conditions in your specific area
- Title complications
- Timeline (faster close = we can pay more)
Example Scenario:
Inherited House in Delaware County:
- ARV (if fixed up): $280,000
- Needed repairs: $45,000
- Our buying/selling costs: $20,000
- Our profit margin: $30,000
- Cash Offer: $185,000
What you save:
- $16,800 agent commission
- $7,000 closing costs
- $45,000 in repairs
- $5,000 estate cleanout
- $3,000 in holding costs
- Total saved: $76,800
Net comparison:
- List at $280,000 – $76,800 in costs = $203,200 (6 months, huge hassle)
- Sell as-is for $185,000 = $185,000 (2 weeks, zero hassle)
For many heirs, giving up $18,000 to avoid 6 months of stress and hassle is absolutely worth it.
Red Flags: Avoiding Inheritance Scams
Unfortunately, there are people who prey on grieving families. Watch out for:
🚩 Unsolicited letters immediately after the obituary 🚩 High-pressure tactics (“This offer expires today!”) 🚩 Requests for upfront fees (legitimate buyers never charge fees) 🚩 Assignment contracts (where they flip your contract to another buyer) 🚩 Renegotiation after inspection (bait and switch tactics) 🚩 No proof of funds (they can’t actually buy your house)
Legitimate cash buyers:
- Have verifiable company information
- Provide proof of funds
- Explain their numbers clearly
- Give you time to think (no rush)
- Have reviews and references
- Close through reputable title companies
Frequently Asked Questions
Q: Can I sell an inherited house before probate is complete?
A: Usually yes, but it depends on the situation. As executor, you can typically sell during probate with court approval or written consent from all heirs. We handle properties in probate regularly.
Q: What if my sibling won’t agree to sell?
A: This requires legal guidance, but options include: one sibling buying out the others, partition action (court-forced sale), or cash buyer purchasing individual interests.
Q: Do I have to pay capital gains tax on inherited property?
A: Usually no, thanks to the step-up in basis. You only pay capital gains on appreciation above the date-of-death value.
Q: What happens to the mortgage when someone dies?
A: The loan doesn’t disappear. Options include: paying it off, continuing payments, refinancing, or selling the property and using proceeds to pay off the loan.
Q: Can you really buy my house if it’s full of stuff?
A: Yes. We buy houses fully furnished with all belongings left inside. We sort everything, donate what we can, and dispose of the rest—at no cost to you.
Q: How quickly can I actually sell?
A: With a cash buyer, you can close in as little as 7-14 days. With traditional listing, expect 3-6 months.
Q: What if the house is in really bad shape?
A: We buy houses in ANY condition—hoarder situations, fire damage, mold, structural issues, roof collapse. We’ve truly seen it all.
Q: Is selling as-is legal?
A: Absolutely. It’s a standard transaction; you’re simply selling the property in its current condition with no repairs or warranties.
The Bottom Line
Inheriting a house in Pennsylvania comes with decisions you need to make quickly:
- Deal with probate and legal requirements
- Pay inheritance taxes within 9 months
- Maintain and secure the property
- Coordinate with siblings or co-heirs
- Clear out decades of belongings
- Make expensive repairs or sell as-is
- Balance emotional attachments with financial reality
There’s no “right” answer that works for everyone. But for most heirs we work with, selling as-is provides the fastest, simplest path to moving forward with their lives.
If you’ve inherited property anywhere in Pennsylvania and want to know your options:
Call (267) 291-0821 or fill out the form below.
We’ll give you a no-obligation cash offer within 24 hours. You can then compare it to other options and make the best decision for your situation.
No pressure. No games. Just straight answers from people who’ve helped hundreds of families through this exact situation.
Get Your Fair Cash Offer Today
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About CFR Philly: We’re a Pennsylvania-based real estate investment company specializing in inherited properties. We understand the unique challenges of probate, multiple heirs, out-of-state ownership, and emotional attachment. We’ve helped hundreds of families across PA sell inherited properties quickly and fairly. If you need to sell an inherited house in Pennsylvania, we can help.
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